Photograph by: Handout
, Chute Gerdeman

Just as milk is stocked in the far reaches of the supermarket, Canadian animal lovers know to expect a long walk when they go to buy pet food — and that they have a dog's chance of leaving with solely that item.

But merchandising tactics aside, with "needs" at the back and "wants" at the front, analysts say pet care retailers are thriving not because they've copied the grocery store model but because of recent, very strategic shifts away from it.

"More important than visual anchors and specific colour schemes is the changing dynamic of pet stores to be social, and to recognize the place of the pet in family life," says Joanna Felder, a noted expert on retail design. "It's about looking at pet ownership as more than just maintenance."

According to Felder, who helped redesign the multimillion-dollar U.S. chain Petco, forward-thinking stores are placing more focus on play (bringing training out of the backrooms and into the retail environment, for example), emphasizing education and advocacy ("people want their store to exhibit a conscience") and socializing shopping (hosting fun in-store events).

She notes that the changes at Petco were guided by the notion that pets are now seen as family members. For instance, grooming areas were made visible from the outside, to calm owners' nerves, while reflective glass was used on the inside, to ensure the animals' own sense of calm.

Independent research found the redesign resulted in the stores' conversion rate — that is, visitors making purchases — growing by double digits.

In Canada, modest but steady growth has been a hallmark of pet care in recent years. Euromonitor International reports 3.9 per cent industry growth in Canada between 2010 and 2011, with a further 4.1 per cent increase forecasted for 2012. This will bring the total value of pet products and food, excluding grooming services, prescriptions and vet services, to a healthy $28.4 billion.

Patrick Dalessandro, of retail design firm JGA, says that if the supermarket format was "pet store 2.0," experiential marketing represents the third wave. To illustrate, he points to the JGA-designed PawsWay pet experience centre in Toronto, which features a dog-height drinking fountain, pet play stations and interactive education areas.

"We see opportunity for redefining a pet store from a house of brands to a branded house, where pet parents and their pets can experience all products and services through a place that focuses on education and customer services," says Dalessandro, director of client strategy.

"If you provide for grazers and discoverers — those shoppers that are more apt to spend time in the store — then individuals who are normally more pragmatic or planners will end up spending more time in-store as well."

Morningstar, a provider of independent investment research, projects annual growth of three to five per cent over the next three years for the industry. That such a mature, saturated category can still pull such numbers is credited to the inroads retailers have made to customer loyalty — and, for the most part, retaining those people as bricks and mortar shoppers.

"They're offering services such as grooming, training, boarding and day camp, all by design to increase foot traffic and repeat visits," says Peter Wahlstrom, senior equity analyst. "Those things are difficult to do over the web."

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